I thought maybe we could share some of our favorite indicators to define an intra-day trend. Here's a couple I use. 1. MACD- (Fast 18) (Slow 9) (MA 4)...When the 18 rises above .60, I start looking for a trade. 2. ADX-(14 period)...when the ADX reaches 30 I start looking for a trade.
Why not just look at the chart and observe if the security is making higher highs & higher lows vs lower lows and lower highs?
Might seem a bit too simplefied, but I basically just glance at a chart for the timeframe I am trading. If I can't define the trend immediately, without any thought, then for my trading purposes, the market is going sideways.
overall intraday trend, 13min chart: 5pd EMA = yellow 15pd EMA = Red Yellow above red, market is long Yellow below red, market is short see attached image. very simple.
Trends suck...everybody seems to think they know what the trend is...but lotsa folks get crushed trying to jump on the trendwagon...the problem with the definition of "trend" is that the definition doesn't include "reversal" and when you are most "vulnerable"
Thanks for the attachment m_c. So, for going to all that trouble I felt compelled to repay the favor in kind. Here's the ADX attach:
This is what makes for an attractive medium term trade for me. -Strong intraday price dip -Very negative MACD -Above average volume -No devastating news (SEC probe, CH11, FDA refusal, etc.) This trade in LWSN made me 50% in a few days (in @ $4 out @ $6). It it doesn't always work but when it does it's a big one. Take a look at the chart.
Boy, you weren't kidding about the volume change...very interesting. I blew up your attachment a little.(so the guys could see it a little better)